Answered: Which of the following statements…

Business

Accounting

Which of the following statements regarding selling fixed assets for cash is NOT true?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Which of the following statements regarding selling fixed assets for cash is NOT true?

a.The journal entry is similar to discarding fixed assets.

b.The cash payment to the buyer is recorded.

c.The cash receipt is recorded.

d.If the selling price is more than the book value, a gain is recorded.

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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